"The cooperation is related to the Negative Investment List revision," Lembong said.

According to Lembong, the expansion of the H&M production capacity was not only to meet demands from Indonesian market, but also from other countries. The H&M would also open new stores in Indonesia.

Lembong added that the annual value of H&M supplies to Indonesia had reached up to US$400 million.

"Ninety eight percent of the products were exported," Lembong revealed.

The expansion of the production capacity was one of commitments to be realized by the government and the Sweden-based clothing producer. Lembong said that the government would also team up with the company in terms of clothing designs.

Swedish Ambassador to Indonesia Johanna Brismar Skoog said that H&M had been one of companies that absorbed significant numbers of workers. Skoog said that Swedish companies, such as IKEA, had managed to absorb about 20,000 workers.